They have not had a corporate Risk officer for 6 months or so...(they were in trouble in September of 2022 (out of compliance with cash on hand (I think))..
So they sold $21B of investments.... But did they get $21B for them? FDIC covers ~$21B of their deposits so there is that $21b plus whatever they got for that $21B of investments plus whatever deposits that they still had plus the liquidation value of any other assets.. That might sum to $50-60 billion to cover $176 billion of deposits a lot of big depositors are going to bein very bad shape... Not making lease payments, not meeting debt obligations, not being able to make payroll and in the likely situation where the depositors are invested in big tech (high growth focus) they are going to have to dump Available For Sale securities at a lose further hammering Big Tech firms who are already laying of tens of thousands per company...
Here's a very related article from late yesterday.
https://www.zerohedge.com/markets/silicon-valley-bank-center-venture-capital-bubble-suffers-record-47-crash-amid-sudden
They have not had a corporate Risk officer for 6 months or so...(they were in trouble in September of 2022 (out of compliance with cash on hand (I think)).. So they sold $21B of investments.... But did they get $21B for them? FDIC covers ~$21B of their deposits so there is that $21b plus whatever they got for that $21B of investments plus whatever deposits that they still had plus the liquidation value of any other assets.. That might sum to $50-60 billion to cover $176 billion of deposits a lot of big depositors are going to bein very bad shape... Not making lease payments, not meeting debt obligations, not being able to make payroll and in the likely situation where the depositors are invested in big tech (high growth focus) they are going to have to dump Available For Sale securities at a lose further hammering Big Tech firms who are already laying of tens of thousands per company...
It is a good time to be a farmer I think.